Formulating a model which summarises transportation costs, uncertainty and price, we describe how a switch to web-based procurement can impact more readily procured services rather than materials. Uncertainty represents a catch-all factor describing the dovetailing of operations between two neither culturally nor geographically proximate, independent firms. Using a 3-year panel, we find positive effects of switching to internet procurement and offshoring inputs and we show that the effect is stronger for services offshored than for materials offshoring.